News

Obama warns of $2,200 tax increase, urges American to tweet #My2K

By Jim Kuhnhenn

Associated Press

Posted:
11/28/2012 09:31:51 AM PST

Updated:
11/28/2012 10:36:23 AM PST

WASHINGTON -- President Barack Obama said Wednesday he believes that members of both parties can reach a "framework" on a debt-cutting deal before Christmas, making his case with a mix of optimism and pressure on congressional Republicans to keep tax rates from rising on the middle class.

The president is urging the public to pressure Congress through social media, pointing to #My2K on Twitter -- a reference to the estimated $2,200 tax increase he said a typical middle-class family of four would see if the Bush tax cuts expire.

Obama, pushing ahead with his campaign to increase revenue by hiking taxes on wealthier Americans, was joined by about a dozen middle-class Americans at a White House event in the midst of negotiation on how to avoid a so-called fiscal cliff at year's end when across-the-board tax hikes and steep spending cuts kick in.

"I am ready and able and willing and excited to go ahead and get this issue resolved in bipartisan fashion so that American families, American businesses have some certainty going into next year," Obama said.

He took special note of reports that some Republicans have expressed a willingness to extend the current expiring tax rates for households earning less than $250,000. Conservative Oklahoma GOP Rep. Tom Cole told GOP colleagues in a private meeting on Tuesday that it's better to extend tax cuts for 98 percent of taxpayers than engage in a prolonged fight that risks increasing taxes on everyone. Cole is a longtime GOP loyalist and a confidant of House Speaker John Boehner, R-Ohio.

Advertisement

"I'm glad to see, if you've been reading the papers lately, that more and more Republicans in Congress seem to be agreeing with this idea that we should have a balanced approach," Obama said, noting that the Senate has already passed legislation to extend current rates to those middle class taxpayers.

"The Democrats in the House are ready to vote for that same bill today," he said. "If we can get a few House Republicans to agree as well, I'll sign this bill as soon as Congress sends it my way. I've got to repeat: I've got a pen. I'm ready to sign it."

He made an appeal to the public to pressure Congress, arguing that similar efforts late last year to extend a payroll tax cut resulted in congressional passage.

"When the American people speak loudly enough, lo and behold, Congress listens," he said.

While expressing confidence that he and Congress could strike a bargain for a "framework in the coming weeks,"

Obama says we need to "approach this problem with the middle-class in mind."

The president is also meeting with corporate executives at the White House on Wednesday and then traveling to Pennsylvania on Friday to push for upper income bracket earners to pay higher tax rates. It's part of a campaign to pressure Republicans in Congress to support raising taxes on the wealthy.